MIRA INFORM REPORT

 

 

Report Date :

25.02.2013

 

IDENTIFICATION DETAILS

 

Name :

CREATEX  INTERNATIONAL  COMPANY  LIMITED

 

 

Registered Office :

19/4  Soi  Saeng- Ngern,  Sukhumvit  55  Road,   Klongtonnua,Wattana, Bangkok  10110

 

 

Country :

Thailand

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

30.07.1990

 

 

Com. Reg. No.:

0105533089381

 

 

Legal Form :

Private  Limited  Company

 

 

Line of Business :

Importer  and  Distributor of Dairy  Foods  and  Related  Products

 

 

No. of Employees :

11

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

 

Status :

Moderate

Payment Behaviour :

Slow

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

Thailand

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

THAILAND - ECONOMIC OVERVIEW

 

With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.

Source : CIA

Company name 

 

CREATEX  INTERNATIONAL  COMPANY  LIMITED

 

 

SUMMARY

 

BUSINESS  ADDRESS                          :           19/4  SOI  SAENG-NGERN,  SUKHUMVIT  55  ROAD,

                                                                        KLONGTONNUA,  WATTANA,  BANGKOK  10110

TELEPHONE                                         :           [66]  2185-0818

FAX                                                      :           [66]  2185-0819 

E-MAIL  ADDRESS                                :           -

REGISTRATION  ADDRESS                  :           SAME  AS  BUSINESS  ADDRESS

 

ESTABLISHED                                     :           1990

REGISTRATION  NO.                           :           0105533089381

TAX  ID  NO.                                         :           3101890044

CAPITAL REGISTERED                         :           BHT.   2,000,000

CAPITAL PAID-UP                                :           BHT.   2,000,000

SHAREHOLDER’S  PROPORTION         :           THAI          :   100%

FISCAL YEAR CLOSING DATE              :           DECEMBER   31            

LEGAL  STATUS                                  :           PRIVATE  LIMITED  COMPANY

EXECUTIVE                                          :           MS. PAVICHAYA  KANONRANGSI,  THAI

                                                                        MANAGING  DIRECTOR           

 

NO.  OF  STAFF                                   :           11

LINES  OF  BUSINESS                          :           DAIRY  FOODS  AND  RELATED  PRODUCTS

                                                                        IMPORTER  AND  DISTRIBUTOR

                                                                         

 

CORPORATE  PROFILE

 

OPERATING  TREND                            :           STABLE                       

PRESENT  SITUATION                          :           OPERATING  NORMALLY                     

REPUTATION                                       :           FAIR  WITH  NORMAL  BUSINESS  ENGAGEMENT

MANAGEMENT  STANDARD                 :           MANAGEMENT  WITH  FAIR  PERFORMANCE             

 

 

 

 

HISTORY

 

The  subject  was  established  on  July  30,  1990  as  a  private  limited  company under  the  originally  registered  name  “Createx  Advertising  Company  Limited”   by  Thai groups,  with  the  initial  business  objective  to  provide  advertising  service  for  general  merchandise.  On  October  19,  1990,  its  registered  name  was  changed  to  CREATEX  INTERNATIONAL  COMPANY  LIMITED,  and  the  core  business  has  become  to  import  and  distribute  various  kinds  of  dairy  foods  and  related  products.  It  currently  employs  11   staff.  

 

The  subject  is  an  affiliated  company  of  Hydro  Pacific  Co.,  Ltd.,  Thailand.

 

The  subject’s  registered  address  is  19/4   Soi  Saeng-Ngern,   Sukhumvit   55  Rd.,  Klongtonnua,  Wattana,  Bangkok  10110,  and  this  is  the  subject’s  current  operation  address.  

 

 

THE  BOARD  OF  DIRECTOR

 

     Name

 

Nationality

Age

 

 

 

 

Ms. Pavichaya  Kanonrangsi

 

Thai

43

Mr. Supachai  Chanantranond

 

Thai

56

 

 

AUTHORIZED  PERSON

 

One  of  the  above  directors  can  sign  on  behalf  of  the  subject  with  company’s  affixed.

 

 

MANAGEMENT

 

Ms. Pavichaya  Kanonrangsi   is  the  Managing  Director.

She  is  Thai  nationality  with  the  age  of  43  years  old.  

 

 

BUSINESS  OPERATIONS

 

The  subject’s  core  business  is  engaged  in  importing  and  distributing  various  kinds  of  dairy  foods,  food  seasonings  and  related  products,  including  organic  oat  milk,  organic  original  almond  milk,  organic  rice  milk,  jams,  sauce,  dressing,  olive  oil,  pasta,  spaghetti and  etc.  The  subject  also  provides  advertising  brokerage  service  for  general  merchandise.

 

PURCHASE

 

The   products  are  purchased  from  suppliers  both   domestic  and  overseas,  mainly  in  Brazil,  Italy,  France  and  Japan.

 

SALES 

 

100%  of  the  products  is  sold  locally  by  wholesale  to  trader,  mainly  supermarket  and  end-users.

 

 

SUBSIDIARY  AND  AFFILIATED  COMPANY

 

The  subject  is  not  found  to  have  any  subsidiary  or  affiliated  company  here  in  Thailand.

 

 

LITIGATION

 

Bankruptcy  and  Receivership

 

There  are  no  litigation  on  bankruptcy  and  receivership  cases  filed  against  the  subject  found  at  Legal  Execution  Department  for  the  past  five  years.

 

Others

 

There  are  no  legal  suits  filed  against   the  subject  for  the  past  two  years.

 

 

CREDIT  

 

Sales  are  by  cash  or  on  the  credits  term  of  30-60  days.

Local  bills  are  paid  by  cash  or  on  the  credits  term  of  30-60  days.

Imports  are  by  T/T.

 

 

BANKING

 

Bangkok  Bank  Public  Co.,  Ltd.

 

 

EMPLOYMENT

 

The  subject  currently  employs  11  staff.  

 

 

LOCATION  DETAILS

 

The  premise  is  rented for  administrative  office  at  the  heading  address.  Premise  is  located  in  commercial/residential  area.

COMMENT

 

The subject operates as an importer  and distributor of dairy  products  and  related  food products   to domestic market.   Its  products  are   served  mainly to  consumer  market. 

 

With  strong consumption  in local market,  its  business would achieve strong growth in the long-term prospect.

 

 

FINANCIAL  INFORMATION

 

The  capital  was  registered  at  Bht. 1,000,000  divided  into 10,000  shares  of  Bht.  100     each  with  fully  paid.

 

On  November  29,  1990,  the  registered  capital  was  increased  to  Bht.  2,000,000  divided  into  20,000  shares  of  Bht. 100  each  with  fully  paid.

 

THE  SHAREHOLDERS  LISTED  WERE  :  [as  at  April  30,  2012]

 

       NAME

HOLDING

%

 

 

 

Hydro  Pacific  Co.,  Ltd.

Nationality:  Thai

Address     :  19/4  Sukhumvit  55  Rd.,  Klongtonnua,

                     Wattana,  Bangkok 

14,995

74.98

Ms. Pavichaya  Kanonrangsi

Nationality:  Thai

Address     :  81/25  Soi  Prachasanti,  Samsennai, 

                     Phayathai,  Bangkok

  5,000

25.00

Mr. Chayanath  Osathanukroh

Nationality:  Thai

Address     :  184  Moo  2,  T. Bankoo,  A. Muang,

                     Chiangrai

        2

0.01

Mr. Roy-adisorn  Chudabha

Nationality:  Thai

Address     :  1  Wireless  Rd.,  Lumpini,  Pathumwan,

                     Bangkok

        1

 

Mr. Varach  Somboon

Nationality:  Thai

Address     :  25  Soi  Pramote,  Silom  Rd.,  Suriyawongse,

                     Bangrak,  Bangkok  

        1

=  0.01

Mr. Sathit  Monrat

Nationality:  Thai

Address     :  36/9  Moo  12,  Wangthonglang,  Bangkapi, 

                     Bangkok 

        1

 

 

Total  Shareholders  :   6

 

Share  Structure  [as  at  April  30,  2012]

 

Nationality

Shareholders

No. of  Share

% Shares

 

 

 

 

Thai

6

20,000

100.00

Foreign

-

-

-

 

Total

 

6

 

20,000

 

100.00

 

NAME  OF  AUDITOR  &  CERTIFIED  PUBLIC  ACCOUNTANT  NO. :

 

Mr. kamthorn  Deevilaiphan         No.   5705

 

 

BALANCE SHEET [BAHT]

 

The  latest  financial figures  published  as  at  December  31,  2011,  2010  &  2009  were:

          

ASSETS

                                                                                                 

Current Assets

2011

2010

2009

 

 

 

 

Cash  and Cash Equivalents     

395,051.81

3,032,281.90

393,645.85

Short-term  Investment

289,250.00

-

-

Trade  Accounts  &  Other  Receivable 

14,490,693.03

4,021,387.45

4,707,684.91

Inventories     

979,932.10

-

6,416.81

Other  Current  Assets                  

-

-

9,632.33

 

 

 

 

Total  Current  Assets                

16,154,926.94

7,053,669.35

5,117,379.90

 

Other  Long-term Investment            

 

-

 

20,000,000.00

 

25,000,000.00

Fixed Assets

1,278,817.37

1,489,652.71

573,633.60

Other  Non-current  Assets                      

407,112.56

392,375.36

392,375.36

 

Total  Assets                 

 

17,840,856.87

 

28,935,697.42

 

31,083,388.86

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

 

 

Current Liabilities

2011

2010

2009

 

 

 

 

Bank Overdraft

-

-

28,807.16

Trade  Accounts  &  Other  Payable    

2,049,008.47

2,017,627.84

-

Other  Current  Liabilities             

-

-

2,348,642.81

 

 

 

 

Total Current Liabilities

2,049,008.47

2,017,627.84

2,377,449.97

 

Long-term Loan  

 

18,802,244.11

 

27,802,244.11

 

30,802,244.11

 

Total  Liabilities            

 

20,851,252.58

 

29,819,871.95

 

33,179,694.08

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

Share  capital : Baht  100  par  value 

  authorized,  issued  and  fully 

  paid  share  capital  20,000  shares

 

 

2,000,000.00

 

 

2,000,000.00

 

 

2,000,000.00

 

 

 

 

Capital  Paid                      

2,000,000.00

2,000,000.00

2,000,000.00

Retained Earning  Unappropriated

[5,010,395.71]

[2,884,174.53]

[4,096,305.22]

 

Total Shareholders' Equity

 

[3,010,395.71]

 

[884,174.53]

 

[2,096,305.22]

 

Total  Liabilities  &  Shareholders' 

   Equity

 

 

17,840,856.87

 

 

28,935,697.42

 

 

31,083,388.86

                                                  

 

PROFIT  &  LOSS  ACCOUNT

 

 

Revenue

2011

2010

2009

 

 

 

 

Sales  & Services  Income

23,604,292.87

14,226,343.21

8,610,820.32

Other  Income                 

10,982.72

3,558.52

9,868.48

 

Total  Revenues           

 

23,615,275.59

 

14,229,901.73

 

8,620,688.80

 

Expenses

 

 

 

 

 

 

 

Cost  of  Goods  Sold  &  Service

12,276,379.45

9,769,540.46

5,956,057.82

Selling  Expenses

187,860.42

102,099.92

-

Administrative  Expenses

2,277,256.90

3,146,130.66

1,805,814.81

Loss  on  Sales  of  Investment

11,000,000.00

-

-

 

Total Expenses             

 

25,741,496.77

 

13,017,771.04

 

7,761,872.63

 

Profit / [Loss]  before   Income  Tax

 

[2,126,221.18]

 

1,212,130.69

 

858,816.17

Income  Tax

-

-

-

 

 

 

 

Net  Profit / [Loss]

[2,126,221.18]

1,212,130.69

858,816.17

 

FINANCIAL  ANALYSIS

 

 

ITEM

UNIT

2011

2010

2009

 

 

 

 

 

LIQUIDITY RATIO

 

 

 

 

CURRENT RATIO

TIMES

7.88

3.50

2.15

QUICK RATIO

TIMES

7.41

3.50

2.15

 

 

 

 

 

ACTIVITY RATIO

 

 

 

 

FIXED ASSETS TURNOVER

TIMES

18.46

9.55

15.01

TOTAL ASSETS TURNOVER

TIMES

1.32

0.49

0.28

INVENTORY CONVERSION PERIOD

DAYS

29.14

-

0.39

INVENTORY TURNOVER

TIMES

12.53

-

928.20

RECEIVABLES CONVERSION PERIOD

DAYS

224.07

103.18

199.55

RECEIVABLES TURNOVER

TIMES

1.63

3.54

1.83

PAYABLES CONVERSION PERIOD

DAYS

60.92

75.38

-

CASH CONVERSION CYCLE

DAYS

192.29

27.79

199.95

 

 

  

 

 

PROFITABILITY RATIO

 

 

 

 

COST OF GOODS SOLD

%

52.01

68.67

69.17

SELLING & ADMINISTRATION

%

10.44

22.83

20.97

INTEREST

%

-

-

-

GROSS PROFIT MARGIN

%

48.04

31.35

30.95

NET PROFIT MARGIN BEFORE EX. ITEM

%

(9.01)

8.52

9.97

NET PROFIT MARGIN

%

(9.01)

8.52

9.97

RETURN ON EQUITY

%

-

-

-

RETURN ON ASSET

%

(11.92)

4.19

2.76

EARNING PER SHARE

BAHT

(106.31)

60.61

42.94

 

 

 

 

 

LEVERAGE RATIO

 

 

 

 

DEBT RATIO

TIMES

1.17

1.03

1.07

DEBT TO EQUITY RATIO

TIMES

(6.93)

(33.73)

(15.83)

TIME INTEREST EARNED

TIMES

-

-

-

 

 

 

 

 

ANNUAL GROWTH

 

 

 

 

SALES GROWTH

%

65.92

65.21

 

OPERATING PROFIT

%

(275.41)

41.14

 

NET PROFIT

%

(275.41)

41.14

 

FIXED ASSETS

%

(14.15)

159.69

 

TOTAL ASSETS

%

(38.34)

(6.91)

 

 

 

ANNUAL GROWTH : RISKY

 

An annual sales growth is 65.92%. Turnover has increased from THB 14,226,343.21 in 2010 to THB 23,604,292.87 in 2011. While net profit has decreased from THB 1,212,130.69 in 2010 to THB -2,126,221.18 in 2011. And total assets has decreased from THB 28,935,697.42 in 2010 to THB 17,840,856.87 in 2011.                  

                       

PROFITABILITY : ACCEPTABLE

 

PROFITABILITY RATIO

 

Gross Profit Margin

48.04

Impressive

Industrial Average

29.03

Net Profit Margin

(9.01)

Deteriorated

Industrial Average

3.42

Return on Assets

(11.92)

Deteriorated

Industrial Average

4.09

Return on Equity

-

 

Industrial Average

8.82

 

Gross Profit Margin used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings. The company’s figure is 48.04%. When compared with the industry average, the ratio of the company was higher, indicated that company was more profitable than the same industry.

 

Net Profit Margin is the indicator of the company's efficiency in that net profit takes into consideration all expenses of the company. A low profit margin indicates a low margin of safety, higher risk that a decline in sales will erase profits and result in a net loss. The company's figure is -9.01%. When compared with the industry average, the ratio of the company was lower.

 

Return on Assets measures how efficiently profits are being generated from the assets employed in the business when compared with the ratios of firms in a similar business. A low ratio in comparison with industry averages indicates an inefficient use of business assets. When compared with the industry average, it was lower, the company's figure is -11.92%.

 

Trend of the average competitors in the same industry for last 5 years

Return on Assets                       Downtrend

Return on Equity                        Downtrend

 

LIQUIDITY : SATISFACTORY

 

 

LIQUIDITY RATIO

 

Current Ratio

7.88

Impressive

Industrial Average

1.53

Quick Ratio

7.41

 

 

 

Cash Conversion Cycle

192.29

 

 

 

 

The Current Ratio is to ascertain whether a company's short-term assets are readily available to pay off its short-term liabilities. The company's figure is 7.88 times in 2011, increased from 3.5 times, then it is generally considered to have good short-term financial strength. When compared with the industry average, the ratio of the company was higher, indicated that company was an efficient operator in a dominant position within its industry.

 

The Quick Ratio is a liquidity indicator that further refines the current ratio by measuring the amount of the most liquid current assets there are to cover current liabilities. The company's figure is 7.41 times in 2011, increased from 3.5 times, although excluding inventory so the company still have good short-term financial strength.

 

The Cash Conversion Cycle measures the number of days a company's cash is tied up in the production and sales process of its operations and the benefit from payment terms from its creditors. It meant the company could survive when no cash inflow was received from sale for 193 days.

 

Trend of the average competitors in the same industry for last 5 years

Current Ratio                 Uptrend

 

LEVERAGE : RISKY

 

 

LEVERAGE RATIO

 

Debt Ratio

1.17

Risky

Industrial Average

0.51

Debt to Equity Ratio

(6.93)

Risky

Industrial Average

1.11

Times Interest Earned

-

 

Industrial Average

4.50

 

Debt to Equity Ratio a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. A higher the percentage means that the company is using less equity and has stronger leverage position.

 

Trend of the average competitors in the same industry for last 5 years

 

Debt Ratio                                 Downtrend

Times Interest Earned                Uptrend

 

 

ACTIVITY : IMPRESSIVE

 

 

ACTIVITY RATIO

 

Fixed Assets Turnover

18.46

Impressive

Industrial Average

3.45

Total Assets Turnover

1.32

Impressive

Industrial Average

1.16

Inventory Conversion Period

29.14

 

 

 

Inventory Turnover

12.53

Impressive

Industrial Average

10.93

Receivables Conversion Period

224.07

 

 

 

Receivables Turnover

1.63

Acceptable

Industrial Average

2.40

Payables Conversion Period

60.92

 

 

 

 

The company's Account Receivable Ratio is calculated as 1.63 and 3.54 in 2011 and 2010 respectively. This ratio measures the efficiency of the company in managing its trade debtors to generate revenue. A lower ratio may indicate over extension and collection problems. Conversely, a higher ratio may indicate an overtly stringent policy. In this case, the company's A/R ratio in 2011 decreased from 2010. This would suggest the company had deteriorated in the management of its debt collections.

 

Inventory Turnover in Days Ratio indicates the liquidity of inventory. It estimates the number of days that it will take to sell the current inventory. Inventory is particularly sensitive to change in business activities. The inventory turnover in days has increased from 0 days at the end of 2010 to 29 days at the end of 2011. This represents a negative trend. And Inventory turnover has increased from 0 times in year 2010 to 12.53 times in year 2011.

 

The company's Total Asset Turnover is calculated as 1.32 times and 0.49 times in 2011 and 2010 respectively. This ratio is determined by dividing total assets into total sales turnover. The ratio measures the activity of the assets and the ability of the firm to generate sales through the use of the assets.

 

Trend of the average competitors in the same industry for last 5 years

Fixed Assets Turnover                Downtrend

Total Assets Turnover                 Downtrend

Inventory Turnover                      Downtrend

Receivables Turnover                  Downtrend

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.43

UK Pound

1

Rs.83.20

Euro

1

Rs.71.91

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.